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<br />Vice Mayor Claire thanked Chairperson Ira and explained that although the format does <br />not include line items, the individual department budgets were available for perusal in the <br />Council Study. He stated it was the best budget in terms of readability. <br /> <br />II) <br /> <br />Welcome (by Ed Everett, City Manager); <br /> <br />City Manager Everett explained the various segments of the presentation and that <br />this is the third time the CIP has been presented. He further explained it is over a <br />year long process preparing the budget and went through the chronology of the <br />Council decision making process that led to the proposed budget. <br /> <br />City Manager Everett gave examples of increases in productivity in the Clerk, Fire <br />and Human Resources Departments. Examples of collaboration and entrepreneurial <br />ventures by the Library, Finance, Community Development Services, Human <br />Resources, Public Works, Parks and Recreation, Fire Department and Police <br />Department were given. <br /> <br />III) <br /> <br />Financial Overview (by Brian Ponty, Finance Director); <br /> <br />Financial Services Director Ponty gave an overview of the General Fund Revenues <br />and Expenditures for each of the next two fiscal years. Overall, he stated the <br />outlook is robust with housing and commercial real estate prices are strong and <br />local sales are showing solid gains. He indicated the situation is not likely to last <br />indefinitely. The funding sources for the General Fund are consistent with the Sales <br />Tax at 30% of revenues and Property Tax at 24%. The next single largest funding <br />source is revenue from other agencies which accounts for about 12% of the <br />revenues. <br /> <br />Expenditures were explained indicating employee costs account for over two thirds <br />of the expenditures. Supplies and services, which include P.G. & E., telephone, <br />professional services and office supplies are the next highest percentage, followed <br />by internal services such as functions provided to us and charged against each <br />other. The smallest portion of the budget is the fixed assets. <br /> <br />Looking ahead to the second year of the proposed budget, sales tax and property tax <br />remain the largest sources of funding. Financial Services Director Ponty explained <br />the potential sales tax leveling off due to electronic sales rather than a tangible <br />format leading to the projection of a 3-1/2% increase in sales tax which is lower <br />than the current inflation rate in the Bay Area. Financial Services Director Ponty <br />explained the property tax distribution as well. <br /> <br />. <br /> <br />Council Questions/Comments/Public Comment <br /> <br />STUDY SESSION <br />MINUTES <br /> <br />JUNE 5, 2000 <br />PAGE 4 <br /> <br />. .-. 1r <br />